TaxTMI 
TaxTMI 
Master Circular on Risk Management and Inter-Bank Dealings
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....ia other than Authorised Dealers Category-................ 1. Forward Contracts ....... 2. Contracts other than Forward Contracts 5 5 10 3. General Guidelines for Over the Counter Foreign Exchange Derivative Contracts 4. Currency Futures... 12 13 5. Commodity Hedging.. A. Hedging of Commodity Price Risk in the International Commodity Exchanges/Markets. B. Hedging of price risk on petroleum & petroleum Products 15 15 17 C. Commodity Hedging by entities in Special Economic Zones. 6. Freight hedging ...... 18 18 Section II Facilities for Persons Resident outside India 1. Facilities for Foreign Institutional Investors (Fils).. 2. Facilities for Non-resident Indians (NRIs). 3. Facilities for Hedging Foreign Direct Investment in India………………….. SECTION III 1. Management of Banks' Assets-Liabilities 2. Hedging of Gold Prices 220 .20 23 23 23 24 22 2222 .24 24 .26 26 2222222222 26 26 26 27 27 27 27 27 3. Hedging of Capital... 4. Participation in the currency futures market in India ...……â....
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..... Full particulars of the contract should be marked on such documents under proper authentication and copies thereof retained for verification. However, AD Category I bank may also allow importers / exporters and special dispensation entities to book forward contracts on the basis of a declaration of an exposure subject to the conditions mentioned in Para 1(ii), Para 1(iii) and Para 1(iv) respectively, of this circular; b) the maturity of the hedge does not exceed the maturity of the underlying transaction; c) the currency of hedge and tenor are left to the choice of the customer; d) where the exact amount of the underlying transaction is not ascertainable, the contract is booked on the basis of a reasonable estimate; e) foreign currency loans/bonds will be eligible for hedge only after final approval is accorded by the Reserve Bank, where such approval is necessary or Loan Registration Number (LRN) is given by the Reserve Bank; f) Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) will be eligible for hedge only after the issue price has been finalized; g) balances in the Exchange Earner's Foreign Currency (EEFC) ....
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....rately for import/export transactions. b) Any forward contract booked without producing documentary evidence will be marked off against this limit. Website:www.fema.rbi.org.in 6 Email: [email protected] 6 of 64 c) Importers and exporters should furnish a declaration to the AD Category I banks regarding amounts booked with other AD Category I banks under this facility. d) An undertaking may be taken from the customer to produce supporting documentary evidence before the maturity of the forward contract. e) Outstanding forward contracts higher than 50 per cent of the eligible limit may be permitted by the AD Category I banks only on being satisfied about the genuine requirements of their constituents after examination of the following documents: • A certificate from the Chartered Accountant of the customer stating that all guidelines have been adhered to while utilizing this facility. ◠A certificate of import/export turnover of the customer during the past three years duly certified by their Chartered Accountant/bank in the format given in Annex-VI. f) In the case of an exporter, the amount of overdue bills....
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.... Note: SMEs are also permitted to use Foreign Currency- Rupee options for hedging their exposures after production of underlying documents [Para 1(i)] or under past performance route [Para 1(ii)] (iv) AD Category I banks may allow resident Individuals to book forward contracts to hedge their foreign exchange exposures arising out of actual or anticipated remittances, both inward and outward, without production of underlying documents, up to a limit of USD 100,000, based on self declaration and subject to the following conditions: a) The contracts booked under this facility should normally be on a deliverable basis. However, in case of mismatches in cash flows or other exigencies, the contracts booked under this facility may be allowed to be cancelled and re-booked. b) The notional value of the outstanding contracts should not exceed USD 100,000 at any time. c) The contracts may be permitted to be booked up to tenors of one year only. d) Such contracts may be booked through AD Category I banks with whom the resident individual has banking relationship, on the basis of an application-cum-declaration in the format given in Annex XV. The AD....
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.... may be allowed to cancel and / or rebook the forward contracts before maturity. Website:www.fema.rbi.org.in 9 Email: [email protected] 9 of 64 2. Contracts other than Forward Contracts (i) A person resident in India who has borrowed foreign exchange in accordance with the provisions of Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000, may enter into an Interest Rate Swap or Currency Swap or Coupon Swap or Foreign Currency Option or Interest Rate Cap or Collar (purchases) or Forward Rate Agreement (FRA) contract with an AD Category I bank in India or with a branch outside India of an Indian bank authorized to deal in foreign exchange in India or with an Off-shore Banking Unit in a SEZ in India for hedging his loan exposure and unwinding from such hedges, provided that: a) the contract does not involve the Rupee. b) final approval has been accorded or loan identification/registration number issued by the Reserve Bank for borrowing in foreign currency. c) the notional principal amount of the hedge does not exceed the outstanding amount of the foreign currency loan. d) the maturity o....
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....rds or any other variable by whatever name called, there Website:www.fema.rbi.org.in 11 Email: [email protected] 11 of 64 shall not be any net inflow of premium. These transactions may be freely booked and/or cancelled. b) Cross currency options should be written on a fully covered back-to-back basis. The cover transaction may be undertaken with a bank outside India, an Off-shore Banking Unit situated in a Special Economic Zone or an internationally recognized option exchange or another AD Category- I bank in India. c) All guidelines applicable for cross-currency forward contracts are applicable to cross-currency option contracts also. d) AD Category I banks desirous of writing options, should obtain a one-time approval from the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office, Amar Building 5th Floor, Mumbai, 400 001, before undertaking the business. Explanation: The contingent foreign exchange exposure arising out of submission of a tender bid in foreign exchange is also eligible for hedging under this sub-paragraph. NOTE: In respect of foreign exchange deri....
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.... (Reserve Bank) Directions, 2008 [Notification No.FED.1/DG(SG)-2008 dated August 6, 2008] (Directions) and Notification No.FED. 2/ ED (HRK)-2009 dated January 19, 2010 issued by the Reserve Bank of India, which have been issued under Section 45W of the Reserve Bank of India Act, 1934. Currency futures are subject to following conditions: Permission (i) Currency futures are permitted in US Dollar (USD) Indian Rupee (INR), Euro (EUR)-INR, Japanese Yen (JPY)-INR and Pound Sterling (GBP)-INR. (ii) Only 'persons resident in India' may purchase or sell currency futures contracts to hedge an exposure to foreign exchange rate risk or otherwise. Features of currency futures Standardized currency futures shall have the following features: Website:www.fema.rbi.org.in 13 Email: [email protected] 13 of 64 a. USD-INR, EUR-INR, GBP-INR and JPY-INR contracts are allowed to be traded. b. The size of each contract shall be USD 1000 for USD-INR contracts, Euro 1000 for Euro-INR contracts, GBP 1000 for GBP-INR contracts and JPY 100,000 for JPY-INR contracts. c. The contracts shall be quoted and settled in Indian Rupees. d. The maturit....
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...., are permitted to hedge the price risk of permitted commodities in the international commodity exchanges/ markets as detailed under subparagraphs A, B and C below. This facility must not be used in conjunction with any other derivative product. The role of Authorized Dealer banks is primarily to provide facilities for remitting foreign currency amounts towards margin requirements from time to time. In lieu of making a direct remittance towards payment obligations arising out of commodity derivative transactions entered into by customers with overseas counterparties, AD Category-l banks may issue guarantees/standby letters of credit to cover these specific payment obligations related to commodity derivatives, subject to the conditions/guidelines in Annex XVI. A. Hedging of Commodity Price Risk in the International Commodity Exchanges/Markets (i) Residents in India, engaged in import and export trade or as otherwise approved by Reserve Bank from time to time, may hedge the price risk of all commodities in the international commodity exchanges/markets. AD Category I banks, satisfying certain minimum norms, authorized by the Reserve Bank, m....
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....nges. Detailed guidelines and reporting requirements for hedging these economic exposures are given in Annex XI. Website:www.fema.rbi.org.in 16 Email: [email protected] 16 of 64 B. Hedging of price risk on petroleum & petroleum Products (i) AD Category I banks authorised by Reserve Bank, may permit domestic oil marketing and refining companies to hedge their commodity price risk to the extent of 50 per cent of their inventory based on the volumes in the quarter preceding the previous quarter. The hedges may be undertaken using over-the-counter (OTC) / exchange traded derivatives overseas with the tenor restricted to a maximum of one- year forward. (ii) AD Category I banks authorised by Reserve Bank may permit domestic oil refining companies to hedge their commodity price risk on domestic purchase of crude oil and sale of petroleum products on the basis of underlying contracts linked to international prices on overseas exchanges / markets. The hedging will be allowed strictly on the basis of underlying contracts. (iii) AD Category I banks authorised by Reserve Bank may permit domestic oil refining companies to hedge their....
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....overseas exchanges/markets. iii. Board approval which explicitly mentions the authority/ies permitted to undertake the transactions, the mark-to-market policy, the counterparties permitted for OTC derivatives, etc. iv. A list of transactions undertaken should be put up to the Board on a half- yearly basis. The AD Category - I bank must obtain a copy of Risk Management Policy from Website:www.fema.rbi.org.in 18 Email: [email protected] 18 of 64 the company incorporating the above details at the time of permitting the transaction itself and as and when changes made therein. B. Freight hedging by Domestic oil refining companies and shipping companies: A.D. Category I banks authorized by the Reserve Bank to permit overseas commodity hedging by resident entities, are permitted to allow domestic oil refining companies and shipping companies to hedge their freight risk in overseas regulated exchanges /OTC markets, on the basis of underlying exposure, the details of which are as follows: The basis of underlying exposure is as follows: (a) In the case of oil refining companies – (i) The freight hedging will be on the basis....
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.... ii) iii) Fils are allowed to hedge the market value of their entire investment in equity and/or debt in India as on a particular date. If a hedge becomes naked in part or full owing to shrinking of the portfolio, for reasons other than sale of securities, the hedge may be allowed to continue to the original maturity, if so desired; these forward contracts, once cancelled may be permitted to be rebooked up to a limit of 2 per cent of the market value (as at the beginning of the financial year) of their investment in equity and / or debt in India, the limit being calculated on the basis of market value of the portfolio. These contracts may be rolled over on or before maturity. The monitoring of forward cover must be done on a fortnightly basis. The reporting format is given at Annex XIII. the cost of hedge is met out of repatriable funds and /or inward remittance through normal banking channel; Website:www.fema.rbi.org.in 20 20 Email: [email protected] 20 of 64 iv) all outward remittances incidental to the hedge are net of applicable taxes. b) The eligibility for cover may be determined on the basis of the declar....
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....the overseas entities have completed all the necessary formalities and obtained necessary approvals (wherever applicable) for the investment. The tenor of the contracts should not exceed six months beyond which permission of the Reserve Bank would be required to continue with the contract. These contracts, if cancelled, shall not be eligible to be rebooked for the same inflows and exchange gains, if any, on cancellation shall not be passed on to the overseas investor. NOTE: All foreign exchange derivative contracts permissible for a person resident outside India other than a FII once cancelled, are not eligible to be rebooked. Flls can rebook contracts as per Para 1 above. Website:www.fema.rbi.org.in 22 22 Email: [email protected] 22 of 64 SECTION III Facilities for Authorised Dealers Category-l 1. Management of Banks' Assets-Liabilities a) AD Category I banks may use the following instruments to hedge their asset-liability portfolio: Interest Rate Swaps, Currency Swaps, and Forward Rate Agreements. AD Category I banks may also purchase call or put options to hedge their cross currency proprietary trading positions....
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.... No.IBS.BC.65/23.10.015/2001-02 dated February 14, 2002. 4. Participation in the currency futures market in India Please refer to Part-A Section I, paragraph 4. In continuation of the same: a) AD Category | Banks may be guided by the DBOD instructions vide DBOD.No.FSD.BC. 29 /24.01.001/2008-09 dated August 6, 2008. b) AD Category | Banks are permitted to become trading and clearing members of the currency futures market of recognised stock exchanges, on their own account and on behalf of their clients, subject to fulfilling the following minimum prudential requirements: i) Minimum net worth of Rs. 500 crores. ii) Minimum CRAR of 10 per cent. iii) Net NPA should not exceed 3 per cent. iv) Net profit for last 3 years. The AD Category - I banks which fulfill the prudential requirements should lay down Website:www.fema.rbi.org.in 24 24 Email: [email protected] 24 of 64 detailed guidelines with the approval of their Boards for trading and clearing of currency futures contracts and management of risks. - (c). AD Category I banks which do not meet the above minimum prudential requirements and AD Category - I banks wh....
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.... in Form A2 and the corresponding debit to the account should be in form A3 under the relevant Returns. 6. Responsibilities of Paying and Receiving Banks In the case of credit to accounts the paying banker should ensure that all regulatory requirements are met and are correctly furnished in form A1/A2 as the case may be. 7. Refund of Rupee Remittances Requests for cancellation or refund of inward remittances may be complied with without reference to Reserve Bank after satisfying themselves that the refunds are not being made in cover of transactions of compensatory nature. 8. Overdrafts / Loans to Overseas Branches/ Correspondents (i) AD Category I banks may permit their overseas branches/ correspondents temporary overdrawals not exceeding Rs.500 lakhs in aggregate, for meeting normal business requirements. This limit applies to the amount outstanding against all overseas branches and correspondents in the books of all the branches of the authorised AD Category I bank in India. This facility should not be used to postpone funding of accounts. If overdrafts in excess of the above limit are not adjusted within five days a report should ....
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.... Website:www.fema.rbi.org.in 29 29 Email: [email protected] 29 of 64 4. Foreign Currency Accounts/ Investments in Overseas Markets (i) Inflows into foreign currency accounts arise primarily from client-related transactions, swap deals, deposits, borrowings, etc. AD Category I banks may maintain balances in foreign currencies up to the levels approved by the Board. They are free to manage the surplus in these accounts through overnight placement and investments with their overseas branches/correspondents subject to adherence to the gap limits approved by the Reserve Bank. (ii) AD Category I banks are free to undertake investments in overseas markets up to the limits approved by their Board. Such investments may be made in overseas money market instruments and/or debt instruments issued by a foreign state with a residual maturity of less than one year and rated at least as AA (-) by Standard & Poor / FITCH IBCA or Aa3 by Moody's. For the purpose of investments in debt instruments other than the money market instruments of any foreign state, bank's Board may lay down country ratings and country - wise limits separately wherever....
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....Exchange Department, Forex Markets Division, Central Office, Mumbai 400001, within 15 days from the close of the month in which the limit was exceeded. Such a report is not necessary if arrangements exist for value dating. b) The funds so raised may be used for purposes other than lending in foreign currency to constituents in India and repaid without reference to the Reserve Bank. As an exception to this rule, AD Category I banks are permitted to use borrowed funds as also foreign currency funds received through swaps for granting foreign currency loans for export credit in terms of IECD Circular No 12/04.02.02/2002-03 dated January 31,2003. Any fresh borrowing above this limit shall be made only with the prior approval of the Reserve Bank. Applications for fresh ECBs should be made as per the current ECB Policy. c) The following borrowings would continue to be outside the limit of 50 per cent of unimpaired Tier I capital or USD 10 million (or its equivalent), whichever is higher: i). Overseas borrowings by AD Category I banks for the purpose of financing export credit subject to the conditions prescribed in IECD Master Circular dated J....
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....t details of exposures of all corporate clients who meet the prescribed criteria have to be included in the report. v) AD Category-I banks have to report their total outstanding foreign currency borrowings under all categories as on the last Friday of every month to The Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office, Amar Building, 5th Floor, Mumbai-400 001, as per the format in Annex-VIII. The report should be received by the 10 th of the following month. Website:www.fema.rbi.org.in 33 33 Email: [email protected] 33 of 64 vi) AD Category-l banks are required to submit a monthly report (as on the last Friday of every month) on the limits granted and utilized by their constituents under the facility of booking forward contracts on past performance basis, as per the format in Annex-IX. The report may be forwarded to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Central Office,, Amar Building, 5th Floor, Mumbai-400 001 and by e-mail to [email protected] so as to reach the Department by the 10th of the f....
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....ank of India (Department of Banking Operations and Development). 3. Calculation of the Net Open Position in a Single Currency The open position must first be measured separately for each foreign currency. The open position in a currency is the sum of (a) the net spot position, (b) the net forward position and (c) the net options position. a) Net Spot Position The net spot position is the difference between foreign currency assets and the liabilities in the balance sheet. This should include all accrued income/expenses. b) Net Forward Position This represents the net of all amounts to be received less all amounts to be paid in the future as a result of foreign exchange transactions which have been concluded. These transactions, which are recorded as off-balance sheet items in the bank's books, would include: ( i ) spot transactions which are not yet settled; (ii) forward transactions; Website:www.fema.rbi.org.in 35 Email: [email protected] 35 of 64 (iii) guarantees and similar commitments denominated in foreign currencies which are certain to be called; (iv) net of amounts to be received/paid in respect of currency ....
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....t swap curve as appearing on page ICAP 1 and SWAQ of the REUTERS screen on a consistent basis( i.e. adopting a specified time at which the same is to be determined). The methodology to be adopted/ selection of the rate/cut-off time etc. are to be a part of respective bank's laid down policy guidelines by the Management. 5. Capital Requirement As prescribed by Reserve Bank from time to time Website:www.fema.rbi.org.in 37 Email: [email protected] 37 of 64 Annex II [see Part D, paragraph (i)] Reporting of Forex Turnover Data - FTD and GPB The guidelines and formats for preparation of the FTD and GPB reports are given below. AD Category-l banks may ensure that the reports are properly compiled on the basis of these guidelines: The data for a particular date has to reach us by the close of business of the following working day. FTD 1. SPOT - Cash and tom transactions are to be included under 'Spot' transactions. 2. SWAP Only foreign exchange swaps between authorised dealers category-I should be reported under swap transactions. Long term swaps (both cross currency and foreign currency-Rupee swaps) should not be included....
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....reign Currency Balances (Cash Balance + All Investments) Net Open Exchange Position ||: (Rs.) Of the above FCY/INR AGL maintained (In USD mio) IN USD MILLION O/B (+)/O/S (-) IN INR CRORE IN INR CRORE VaR maintained(In INR): FOREIGN CURRENCY MATURITY MISMATCH (IN USD MILLION) I month Il months III months IV months V months VI months >VI months 40 Website:www.fema.rbi.org.in 40 Email: [email protected] 40 of 64 Annex III [see Part D,paragraph (ii)] Statement of Nostro/Vostro Balances for the month of Name & address of the Authorised Dealer Category-l bank........ Sr. No. Currency Net balance Nostro Account in Net balance in Vostro Account. 1 USD 2 EUR 3 JPY 456 GBP INR Other currencies (in US $ million) Note: In case the variation in each item above (given at 1 to 5) exceeds 10% in a month, the reason may be given briefly, as a footnote. This statement should be addressed to The Director, Division of International Finance, Department of Economic Analysis and Policy, Reserve Bank of India, Central Office Building, 8th Floor, Mumbai- 400 001. Phone: 022-226....
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.... Export Import 2006-07 2007-08 of Existing limit for booking of forward cover based on past performance Percentage overdue bills to turnover Export Import Export Import 2008-09 ▬▬▬▬▬▬▬ 45 of 64 Annex VII [See Part A, Section I, paragraph 2 (iii)] Foreign currency- Rupee Options 1. AD Category-l banks are permitted to offer foreign currency Rupee options under the following terms and conditions: a) This product may be offered by AD Category-I banks having a minimum CRAR of 9 per cent, on a back-to-back basis. b) AD banks having adequate internal control, risk monitoring/ management systems, mark to market mechanism and fulfilling the following criteria will be allowed to run an option book after obtaining a one time approval from the Reserve Bank: i. Continuous profitability for at least three years ii. Minimum CRAR of 9 per cent iii. Net NPAs at reasonable levels (not more than 5 per cent of net advances) iv. Minimum Net worth not less than Rs. 200 crore c) For the present, AD Category-l banks can offer only plain vanilla European opt....
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....eral Manager, Reserve Bank of India, Foreign Exchange Department, Forex Markets Division, Amar building 5th Floor, Central Office, Fort, Mumbai-400001 with a copy of the approval of the Competent Authority (Board/Risk Committee/ALCO) and a copy of the detailed memorandum put up in this regard. AD Category-l banks who wish to use the product on a back-to-back basis may keep the above Division informed in this regard. b) Market makers would be allowed to hedge the 'Delta' of their option portfolio by accessing the spot markets. Other ‘Greeks' may be hedged by entering into option transactions in the inter-bank market. The 'Delta' of the option contract would form part of the overnight open position. As regards inclusion of option contracts for the purpose of 'AGL', the "delta equivalent" as at the end of each maturity shall be taken into account. The residual maturity (life) of each outstanding option contracts can be taken as the basis for the purpose of grouping under various maturity buckets. (For definition of the various 'Greeks' relating to option contracts, please refer the report of the RBI Technical Committee on foreign c....
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....ries) Circular No. 92 dated April 4, 2003. III. Change in Portfolio Delta Report Change in USD-INR delta for a 0.25% change in spot ($-appreciation) in INR terms = Change in USD-INR delta for a 0.25% change in spot ($-depreciation) in INR terms = Similarly, Change in delta for a 0.25% change in spot (FCY appreciation & depreciation separately) in INR terms for other currency pairs, such as EUR- INR, JPY-INR etc. IV. Strike Concentration Report Maturity Buckets Strike Price 1 week 2 1 2 months 3 3 months weeks month months Website:www.fema.rbi.org.in 50 50 Email: [email protected] 50 of 64 This report should be prepared for a range of 150 paise around current spot level. Cumulative positions to be given. All amounts in USD million. When the bank owns an option, the amount should be shown as positive. When the bank has sold an option, the amount should be shown as negative. All reports may be sent via e-mail by market-makers to [email protected]. Reports may be prepared as of every Friday and sent by the following Monday. Website:www.fema.rbi.org.in 51 Email: [email protected] 51 of ....
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....ried over and taken into account in the next year's limit and therefore shall be included while computing the eligible limits for the next year [PART A, Section I, paragraph 1(ii)(a)] Website:www.fema.rbi.org.in 53 53 Email: [email protected] 53 of 64 Annex X [See Part A, Section I, paragraph 5 A (i)] Hedging of Commodity Price Risk in the International Commodity Exchanges/Markets AD Category I banks, authorized by Reserve Bank, can grant permission to companies listed on a recognized stock exchange to hedge the price risk in respect of any commodity (except gold, platinum and silver) in the international commodity exchanges/ markets. AD Category I banks satisfying the minimum norms as given below and interested in extending this facility to their customers may forward the application for approval, to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Forex Markets Division, Amar Building, 5th Floor, Fort, Mumbai - 400 001. Minimum norms which are required to be satisfied by the AD Category-I banks: i) Continuous profitability for at least three years; ii) iii....
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.... is permitted. 2. All standard exchange traded futures and options (purchases only) are permitted. If the risk profile warrants, the corporate/firm may also use OTC contracts. It is also open to the Corporate/firm to use combinations of option strategies involving a simultaneous purchase and sale of options as long as there is no net inflow of premium direct or implied. Corporates/firms are allowed to cancel an option position with an opposite transaction with the same broker. 3. The corporate/firm should open a Special Account with the AD Category-I bank. All payments/receipts incidental to hedging may be effected by the AD Category-l banks through this account without further reference to the Reserve Bank. Website:www.fema.rbi.org.in 55 55 Email: [email protected] 55 of 64 4. A copy of the Broker's Month-end Report(s), duly confirmed/countersigned by the corporate's Financial Controller should be verified by the AD Category-l bank to ensure that all off-shore positions are/were backed by physical exposures. 5. The periodic statements submitted by Brokers, particularly those furnishing details of transactions b....
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....d policies which define the overall framework within which derivatives activities should be conducted and the risks controlled. (ii) Applications from customers to undertake hedge transactions not covered under the delegated authority may continue to be forwarded to Reserve Bank by the AD Category – I banks, for approval as hitherto. - Website:www.fema.rbi.org.in 57 Email: [email protected] 57 of 64 Annex XII [see Part A, Section I, paragraph 5 (B)] Hedging of commodity price risk on petroleum & petroleum Products by domestic crude oil refining companies 1. The hedging has to be undertaken only through AD Category - I banks, who have been specifically authorised by Reserve Bank in terms of A. P. (DIR Series) Circular No. 03 dated July 23, 2005, subject to conditions and guidelines annexed thereto as also given under Annex X. - 2. While extending the above hedging facilities, AD Category – I banks should ensure that the domestic crude oil refining companies hedging their exposures should comply with the following: i. to have Board approved policies which define the overall framework within which ....
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....ring the Cumulative Quarter total - Year to date SMEs Individuals Name of the AD Category - I bank: Signature of the Authorised official : Date: Stamp: Website:www.fema.rbi.org.in 60 60 Email: [email protected] 60 of 64 Annex XV [A. P. (DIR Series) Circular No. 15, dated October 29, 2007] [see Part A, Section I, para 1 (iv)(d)] Application cum Declaration for booking of forward contracts up to USD 100,000 by Resident Individuals (To be completed by the applicant) I. Details of the applicant a. Name b. Address.... c. Account No.. d. PAN No. II. Details of the foreign exchange forward contracts required 1. Amount (Specify currency pair) 2. Tenor III. Notional value of forward contracts outstanding as on date ......... IV. Details of actual / anticipated remittances 1. Amount : 2. Remittance Schedule : 3. Purpose: Declaration 1, ..(Name of the applicant), hereby declare that the total amount of foreign exchange forward contracts booked with the (designated branch) of - ---(bank) in India is within the limit of USD 100,000/- (US Dollar One lakh only) and certify ....
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....eas commodity hedging have been duly complied with. 7. The bank shall ensure that broker's month-end reports duly confirmed /countersigned by corporate's financial controller have been submitted. 8. Brokers' month end reports shall be regularly verified by the bank to ensure that all off-shore positions are / were backed by physical exposures. Website:www.fema.rbi.org.in 62 62 Email: [email protected] 62 of 64 Appendix List of Circulars/Notifications which have been consolidated in the Master Circular on Risk Management and Inter-Bank Dealings Sr. No. Notification / Circular 1. Notification No. FEMA 25/2000-RB 2. 3. 4. 5. 6. 7. 8. 1. 2. Notification No. FEMA 101/2003-RB Notification No. FEMA 104/2003-RB Notification No. FEMA 105/2003-RB Notification No. FEMA 127/2005-RB Notification No. FEMA 143/ 2005-RB Notification No. FEMA 147/2006-RB Notification No. FEMA 148/2006-RB A.P (DIR Series) Circular No. 92 A.P (DIR Series) Circular No. 93 October 21, 2003 January 5, 2005 December 19, 2005 March 16, 2006 March 16, 2006 April 4, 2003 Date May 3, 2000 October....